Bill Text: CA SB831 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Political Reform Act of 1974.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Vetoed) 2014-09-30 - In Senate. Consideration of Governor's veto pending. [SB831 Detail]

Download: California-2013-SB831-Introduced.html

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BILL NUMBER: SB 831	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Hill
   (Principal coauthor: Senator Beall)
   (Principal coauthors: Assembly Members Garcia and Levine)

                        JANUARY 6, 2014

   An act to amend Sections 82015, 89506, and 89515 of, and to add
Sections 87106, 89512.7, and 89515.5 to, the Government Code,
relating to the Political Reform Act of 1974.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 831, as introduced, Hill. Political Reform Act of 1974.
   (1) The Political Reform Act of 1974 provides for the
comprehensive regulation of campaign financing and related matters,
including the reporting of campaign contributions, as defined. Under
existing law, a payment made at the behest of a candidate for
elective office is considered a contribution unless the payment is
made for purposes unrelated to the candidate's candidacy, and a
payment is presumed to be unrelated to a candidate's candidacy if it
is made principally for legislative, governmental, or charitable
purposes. Pursuant to the act, payments principally for legislative,
governmental, or charitable purposes made at the behest of a
candidate who is an elected officer must be reported within 30 days
following the date on which the payment or payments equal or exceed
$5,000 in the aggregate from the same source in the same calendar
year in which they are made.
   This bill would reduce the reporting threshold for a behested
payment to $2,500. The bill would also require the Fair Political
Practices Commission to post certain behested payment reports on its
Internet Web site within 30 days of receipt of the report. The bill
would prohibit an elected officer from requesting that a payment be
made, or a person from making a payment, at the behest of the elected
officer to a business entity or nonprofit organization owned or
controlled by specified persons, as specified, including that
officer, any other elected officer who serves on the same elective
body as the behesting officer and family members, as defined, of
elective officers serving on that elective body.
   (2) The act prohibits specified officers from receiving gifts, as
defined, in excess of $440 in value from a single source in a
calendar year. The act exempts gift payments for the actual costs of
specified types of travel that are reasonably related to a
legislative or governmental purpose, or to an issue of state,
national, or international public policy from the annual limit on the
value of gifts from a single source.
   This bill would impose an annual limit on gift payments from a
single source for these types of travel at $5,000.
   (3) The act requires that contributions deposited into a campaign
account be held in trust for expenses associated with the election of
the candidate or for expenses associated with holding office. The
act provides that an expenditure to seek office is within the lawful
execution of this trust if it is reasonably related to a political
purpose and an expenditure associated with holding office is within
the lawful execution of this trust if it is reasonably related to a
legislative or governmental purpose. Expenditures which confer a
substantial personal benefit must be directly related to a political,
legislative, or governmental purpose. The act authorizes the use of
campaign funds to make donations or loans to bona fide charitable,
educational, civic, religious, or similar tax-exempt nonprofit
organizations. The act imposes additional limitations on certain
expenditures, including those relating to automotive expenses, travel
expenses, tickets for entertainment or sporting events, personal
gifts, and real property expenses.
   The bill would prohibit an elected officer or a committee
controlled by the elected officer from making an expenditure of
campaign funds to a business entity or nonprofit organization owned
or controlled by the officer, any other elected officer who serves on
the same elective body, or family members, as defined, of elective
officers serving on that elective body, as specified.
   This bill would also limit the expenditure of campaign funds for
other purposes, including country club memberships, household food
items, tuition payments, and payments to a health club or
recreational facility.
   (4) A violation of the act's provisions is punishable as a
misdemeanor. By expanding the scope of an existing crime, this bill
would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (5) The Political Reform Act of 1974, an initiative measure,
provides that the Legislature may amend the act to further the act's
purposes upon a 2/3 vote of each house and compliance with specified
procedural requirements.
   This bill would declare that it furthers the purposes of the act.

   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 82015 of the Government Code is amended to
read:
   82015.  (a) "Contribution" means a payment, a forgiveness of a
loan, a payment of a loan by a third party, or an enforceable promise
to make a payment except to the extent that full and adequate
consideration is received, unless it is clear from the surrounding
circumstances that it is not made for political purposes.
   (b) (1) A payment made at the behest of a committee as defined in
subdivision (a) of Section 82013 is a contribution to the committee
unless full and adequate consideration is received from the committee
for making the payment.
   (2) A payment made at the behest of a candidate is a contribution
to the candidate unless the criteria in either subparagraph (A) or
(B) are satisfied:
   (A) Full and adequate consideration is received from the
candidate.
   (B) It is clear from the surrounding circumstances that the
payment was made for purposes unrelated to his or her candidacy for
elective office. The following types of payments are presumed to be
for purposes unrelated to a candidate's candidacy for elective
office:
   (i) A payment made principally for personal purposes, in which
case it may be considered a gift under the provisions of Section
82028. Payments that are otherwise subject to the limits of Section
86203 are presumed to be principally for personal purposes.
   (ii) A payment made by a state, local, or federal governmental
agency or by a nonprofit organization that is exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code.
   (iii) A payment not covered by clause (i), made principally for
legislative, governmental, or charitable purposes, in which case it
is neither a gift nor a contribution. However, payments of this type
that are made at the behest of a candidate who is an elected officer
shall be reported within 30 days following the date on which the
payment or payments equal or exceed  five thousand dollars
($5,000)   two thousand five hundred dollars ($2,500)
 in the aggregate from the same source in the same calendar year
in which they are made. The report shall be filed by the elected
officer with the elected officer's agency and shall be a public
record subject to inspection and copying pursuant to subdivision (a)
of Section 81008. The report shall contain the following information:
name of payor, address of payor, amount of the payment, date or
dates the payment or payments were made, the name and address of the
payee, a brief description of the goods or services provided or
purchased, if any, and a description of the specific purpose or event
for which the payment or payments were made. Once the 
five-thousand-dollar ($5,000)   two thousand five
hundred dollar ($2,500)  aggregate threshold from a single
source has been reached for a calendar year, all payments for the
calendar year made by that source must be disclosed within 30 days
after the date the threshold was reached or the payment was made,
whichever occurs later. Within 30 days after receipt of the report,
state agencies shall forward a copy of these reports to the 
Fair Political Practices  Commission, and local agencies
shall forward a copy of these reports to the officer with whom
elected officers of that agency file their campaign statements. 
Reports filed with the Commission pursuant to this clause shall be
posted on the Commission's Internet Web site not later than 30 days
after receipt by the Commission. 
   (C) For purposes of subparagraph (B), a payment is made for
purposes related to a candidate's candidacy for elective office if
all or a portion of the payment is used for election-related
activities. For purposes of this subparagraph, "election-related
activities" shall include, but are not limited to, the following:
   (i) Communications that contain express advocacy of the nomination
or election of the candidate or the defeat of his or her opponent.
   (ii) Communications that contain reference to the candidate's
candidacy for elective office, the candidate's election campaign, or
the candidate's or his or her opponent's qualifications for elective
office.
   (iii) Solicitation of contributions to the candidate or to third
persons for use in support of the candidate or in opposition to his
or her opponent.
   (iv) Arranging, coordinating, developing, writing, distributing,
preparing, or planning of any communication or activity described in
clause (i), (ii), or (iii).
   (v) Recruiting or coordinating campaign activities of campaign
volunteers on behalf of the candidate.
   (vi) Preparing campaign budgets.
   (vii) Preparing campaign finance disclosure statements.
   (viii) Communications directed to voters or potential voters as
part of activities encouraging or assisting persons to vote if the
communication contains express advocacy of the nomination or election
of the candidate or the defeat of his or her opponent.
   (D) A contribution made at the behest of a candidate for a
different candidate or to a committee not controlled by the behesting
candidate is not a contribution to the behesting candidate.
   (3) A payment made at the behest of a member of the Public
Utilities Commission, made principally for legislative, governmental,
or charitable purposes, is not a contribution. However, payments of
this type shall be reported within 30 days following the date on
which the payment or payments equal or exceed  five thousand
dollars ($5,000)   two thousand five hundred dollars
($2,500)  in the aggregate from the same source in the same
calendar year in which they are made. The report shall be filed by
the member with the Public Utilities Commission and shall be a public
record subject to inspection and copying pursuant to subdivision (a)
of Section 81008. The report shall contain the following
information: name of payor, address of payor, amount of the payment,
date or dates the payment or payments were made, the name and address
of the payee, a brief description of the goods or services provided
or purchased, if any, and a description of the specific purpose or
event for which the payment or payments were made. Once the 
five-thousand-dollar ($5,000)   two thousand five
hundred dollar ($2,500)  aggregate threshold from a single
source has been reached for a calendar year, all payments for the
calendar year made by that source must be disclosed within 30 days
after the date the threshold was reached or the payment was made,
whichever occurs later. Within 30 days after receipt of the report,
the Public Utilities Commission shall forward a copy of these reports
to the Fair Political Practices Commission. Reports filed with
the Fair Political Practices Commission pursuant to this subparagraph
shall be posted on the Commission's Internet Web site not later than
30 days after receipt by the Commission.  
   (4) For purposes of this subdivision and subdivision (h), "made at
the behest of" means made under the control or at the direction of;
in cooperation, consultation, coordination, or concert with; at the
request or suggestion of; or with the express, prior consent of.

   (c) "Contribution" includes the purchase of tickets for events
such as dinners, luncheons, rallies, and similar fundraising events;
the candidate's own money or property used on behalf of his or her
candidacy other than personal funds of the candidate used to pay
either a filing fee for a declaration of candidacy or a candidate
statement prepared pursuant to Section 13307 of the Elections Code;
the granting of discounts or rebates not extended to the public
generally or the granting of discounts or rebates by television and
radio stations and newspapers not extended on an equal basis to all
candidates for the same office; the payment of compensation by any
person for the personal services or expenses of any other person if
the services are rendered or expenses incurred on behalf of a
candidate or committee without payment of full and adequate
consideration.
   (d) "Contribution" further includes any transfer of anything of
value received by a committee from another committee, unless full and
adequate consideration is received.
   (e) "Contribution" does not include amounts received pursuant to
an enforceable promise to the extent those amounts have been
previously reported as a contribution. However, the fact that those
amounts have been received shall be indicated in the appropriate
campaign statement.
   (f) "Contribution" does not include a payment made by an occupant
of a home or office for costs related to any meeting or fundraising
event held in the occupant's home or office if the costs for the
meeting or fundraising event are five hundred dollars ($500) or less.

   (g) Notwithstanding the foregoing definition of "contribution,"
the term does not include volunteer personal services or payments
made by any individual for his or her own travel expenses if the
payments are made voluntarily without any understanding or agreement
that they shall be, directly or indirectly, repaid to him or her.
   (h) "Contribution" further includes the payment of public moneys
by a state or local governmental agency for a communication to the
public that satisfies both of the following:
   (1) The communication expressly advocates the election or defeat
of a clearly identified candidate or the qualification, passage, or
defeat of a clearly identified measure, or, taken as a whole and in
context, unambiguously urges a particular result in an election.
   (2) The communication is made at the behest of the affected
candidate or committee.
  SEC. 2.  Section 87106 is added to the Government Code, to read:
   87106.  (a) An elected officer shall not request that a payment be
made, and a person shall not make a payment, at the behest of the
elected officer, as described in Section 82015, to a business entity
or nonprofit organization that is owned or controlled by that
officer, any other elected officer who serves on the same elective
body, or a family member of any elective officer who serves on that
elective body.
   (b) For purposes of this section, as applied to a Member of the
Legislature, "same elective body" includes both houses of the
Legislature.
   (c) For purposes of this section, a business entity or nonprofit
organization is owned or controlled by an elective officer or family
member of an elected officer if either of the following conditions is
satisfied:
   (1) The elective officer or family member of the elective officer,
or a member of that person's immediate family, has a direct or
indirect interest worth two thousand dollars ($2,000) or more in the
business entity or nonprofit organization.
   (2) The elective officer or family member of the elective officer,
or a member of that person's immediate family, is a director,
officer, partner, or trustee of, or holds any position of management
with, the business entity or nonprofit organization.
   (d) For purposes of this section, "family member of an elected
officer" means the spouse, child, sibling, or parent of an elected
officer.
  SEC. 3.  Section 89506 of the Government Code is amended to read:
   89506.  (a) Payments, advances, or reimbursements, for travel,
including actual transportation and related lodging and subsistence
that is reasonably related to a legislative or governmental purpose,
or to an issue of state, national, or international public policy,
 shall not exceed five thousand dollars ($5,000) in a calendar
year from a single source, but  are  otherwise  not
prohibited or limited by this chapter if either of the following
apply:
   (1) The travel is in connection with a speech given by the elected
state officer, local elected officeholder, candidate for elected
state office or local elected office, an individual specified in
Section 87200, member of a state board or commission, or designated
employee of a state or local government agency, the lodging and
subsistence expenses are limited to the day immediately preceding,
the day of, and the day immediately following the speech, and the
travel is within the United States.
   (2) The travel is provided by a government, a governmental agency,
a foreign government, a governmental authority, a bona fide public
or private educational institution, as defined in Section 203 of the
Revenue and Taxation Code, a nonprofit organization that is exempt
from taxation under Section 501(c)(3) of the Internal Revenue Code,
or by a person domiciled outside the United States which
substantially satisfies the requirements for tax-exempt status under
Section 501(c)(3) of the Internal Revenue Code.
   (b) Gifts of travel not described in subdivision (a) are subject
to the limits in Section 89503.
   (c) Subdivision (a) applies only to travel that is reported on the
recipient's statement of economic interests.
   (d) For purposes of this section, a gift of travel does not
include any of the following:
   (1) Travel that is paid for from campaign funds, as permitted by
Article 4 (commencing with Section 89510), or that is a contribution.

   (2) Travel that is provided by the agency of a local elected
officeholder, an elected state officer, member of a state board or
commission, an individual specified in Section 87200, or a designated
employee.
   (3) Travel that is reasonably necessary in connection with a bona
fide business, trade, or profession and that satisfies the criteria
for federal income tax deduction for business expenses in Sections
162 and 274 of the Internal Revenue Code, unless the sole or
predominant activity of the business, trade, or profession is making
speeches.
   (4) Travel that is excluded from the definition of a gift by any
other provision of this title.
   (e) This section does not apply to payments, advances, or
reimbursements for travel and related lodging and subsistence
permitted or limited by Section 170.9 of the Code of Civil Procedure.

  SEC. 4.  Section 89512.7 is added to the Government Code, to read:
   89512.7.  Except as expressly authorized by this article,
expenditures for the following are prohibited as inconsistent with
the trust imposed by Section 89510:
   (a) A home mortgage, rent, or utility payment.
   (b) A clothing purchase.
   (c) A noncampaign-related automobile expense.
   (d) A country club membership.
   (e) A vacation or other noncampaign-related travel payment.
   (f) A household food item.
   (g) A tuition payment.
   (h) Admission to a sporting event, concert, theater, or other form
of entertainment not related to an election campaign.
   (i) The dues, fees, and other payments to a health club or
recreational facility.
   (j) A gift to a spouse, child, sibling, or parent of a candidate,
elected officer, or other individual with authority to approve the
expenditure of campaign funds held by a committee.
  SEC. 5.  Section 89515 of the Government Code is amended to read:
   89515.  Campaign funds may be used to make donations or loans to
bona fide charitable, educational, civic, religious, or similar
tax-exempt, nonprofit organizations, where no substantial part of the
proceeds will have a material financial effect on the candidate,
 elected officer,  campaign treasurer, or any
individual or individuals with authority to approve the expenditure
of campaign funds held by a committee, or member of his or her
immediate family, and where the donation or loan bears a reasonable
relation to a political, legislative, or governmental purpose  ,
except as prohibited by S   ection   89515.5 
.
  SEC. 6.  Section 89515.5 is added to the Government Code, to read:
   89515.5.  (a) An expenditure of campaign funds by an elected
officer or committee controlled by the elective officer to a business
entity or nonprofit organization that is owned or controlled by the
elective officer, any other elected officer who serves on the same
elective body, or a family member of any elective officer who serves
on that body is deemed to serve the primary purpose of conferring a
personal financial benefit on the recipient and is prohibited as
being unrelated to a political, legislative, or governmental purpose
and inconsistent with the trust imposed by Section 89510.
   (b) For purposes of this section, as applied to a Member of the
Legislature, "same elective body" includes both houses of the
Legislature.
   (c) For purposes of this section, a business entity or nonprofit
organization is owned or controlled by an elective officer or family
member of an elected officer if either of the following conditions is
satisfied:
   (1) The elective officer or family member of the elective officer,
or a member of that person's immediate family has a direct or
indirect interest worth two thousand dollars ($2,000) or more in the
business entity or nonprofit organization.
   (2) The elective officer or family member of the elective officer,
or a member of that person's immediate family is a director,
officer, partner, or trustee of, or holds any position of management
with, the business entity or nonprofit organization.
   (d) For purposes of this section, "family member of an elected
officer" means the spouse, child, sibling, or parent of an elected
officer.
  SEC. 7.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
  SEC. 8.  The Legislature finds and declares that this bill furthers
the purposes of the Political Reform Act of 1974 within the meaning
of subdivision (a) of Section 81012 of the Government Code.